As the world slowly stabilizes after the global economic crisis, it has become apparent that the few companies that were able to weather the storm were wise in their investments, and knew what was needed to keep afloat. One such company, Maersk Line, was not only able to weather the crisis, but also successfully thrived in Australia’s container shipping markets.

The A.P. Moller-Maersk Group, which was founded in 1904 by Mr. A.P. Møller, and of which Maersk Line is a significant division, is headquartered in Copenhagen, Denmark. Maersk Line, the largest of the world’s container vessel operators, has been active in global liner services since 1928 – and through the acquisition of Sea-Land in 1999, the enlarged company is as such also the pioneers of shipping containers, and containerized shipping, which started just over 50 years ago.

According to Soren Houman, Maersk Line’s Managing Director in Australia and the South Pacific, Australia’s economy was able to remain relatively robust during the global economic crisis and Australia was in fact the only one of OECD’s 33 countries that was not pulled into a recession during the difficult year of 2009.

“That in itself is a remarkable achievement,” said Houman. “Australia’s richness of resources and its close geographical vicinity to Asia’s developing markets, notably China, combined with a wise economical policy left Australia less impacted compared to the rest of the developed world. This was also reflected in the container business. While on a global scale, the containerized markets contracted by 10-12% in volume in 2009, the Australian containerized import market dropped by a more modest 8% - while the containerized export market remained flat compared to 2008. Expectations are that we in 2010 will see the Australian import market return to 2008 levels, and an export market growing 2-4%.”

Maersk Line’s Sales Manager for Australia, Anthony Randell, explained that the company transports a solid share of the meat and dairy industries’ export, as well as other significant export commodities like grain, hay, metals, wine, consumer goods and other general freight to destinations in literally every corner of the globe. “Australia is, however, very much an import driven country, with goods for the large retail segment dominating our load lists,” said Randell.

streamLINE: THE CURRENT STRATEGY

“Well before anyone started to talk about a global economic crisis, substantial initiatives were taken within Maersk Line to change the course we were heading. The company had by then doubled its size several times over in a very short time span – and undesirable complexity had started to sneak in, impacting both customers and staff. Our answer was ‘streamLINE,’ an umbrella strategy that set clear directions for growth and yield, but especially directions for a much improved customer experience, the reliability of our products and our environmental performance,” said Houman.

Maersk Line then simplified the global organization, removed layers, de-cluttered processes and sped up decision-making.

“We had thus embarked on the streamLINE journey when the global financial crisis hit, and the timing of our initiatives could hardly have been more optimal. streamLINE did not make Maersk Line immune to the impacts from the global downturn, but it was instrumental in Maersk Line losing less per unit in 2009 than our competitors. Our changed organization, improved cost position and enhanced customer interaction are right now genuinely helping Maersk Line to successfully propel past our competitors as the crisis eases,” said Houman. “Our stated ambition is to become the industry’s undisputed leader – whether we talk customer service, product innovation, environmental care or as a preferred employer.”

Maersk Line holds a global market share of 15-16%, which makes them the largest carrier in a somewhat fragmented market. Maersk Line holds a similar market share of the containerized market in and out of Australia.

Maersk Line operates more than 470 container vessels, including the world’s largest container vessels and a container fleet of more than 1.9 million units. They are present in more than 125 countries and employ 17,000 staff. The Australian market is served by six weekly Maersk Line services effectively linking Australia to the whole world.

CUSTOMERS FIRST

With, according to Houman, Maersk Line’s outstanding employees and near-optimal hardware, the company’s ever increasing focus is directed at its customers’ experience when using Maersk Line’s services.

“We want to be the Amazon.com of the container shipping industry,” Houman continued. “We are intensely working towards providing a customer interface that is inspired by the ease of ordering a product from Amazon.com. To transform our industry, we are not afraid of looking outside for best practice and personalized service like the one that has made a company like Singapore Airlines an industry leader. It is also something we wish to develop with some urgency.”

When it comes to making Maersk Line even more customer-oriented, it has launched a number of substantial initiatives. To assist Maersk Line in identifying, and to an extent designing, the required changes and improvements, the company makes use of the feedback it receives from a panel of around 4,000 customers. Another group of 1,000 customers provide regular input on the development in their needs. Other initiatives include observing, at the customers’ premises, how they interact with liner shipping companies and the daily challenges they face. Finally the feedback from monthly customer satisfaction surveys is listened to carefully; not to forget that the company’s own employees are a valuable source for customer relationship-improving steps.

“We take the feedback from our surveys very seriously so that we may continuously improve our products and our customers’ experience of the services we provide,” continued Houman. “We genuinely want our customers to feel pleased with their experience, feel that trust exists between them and us and customers must always have the sense of being cared for.”

Maersk Line’s level of customer satisfaction is a key performance indicator for the majority of the company’s staff – illustrating the focus that is being given.

In addition to finding out what customers are looking for, Maersk Line is also able to find areas in which its employees can grow and develop.

“Maersk Line is a great company to work for,” Houman emphasized. “Demands are high on staff and our products, but our colleagues really appreciate, and are motivated by the fact that Maersk Line never accepts status quo as an acceptable destination. The company is investing substantial resources in continuously improving in the eyes of our customers.”

DEVELOPING LEADERS

In order to develop the right type of leaders needed to create a successful enterprise, Maersk Line has implemented scientific study and analysis to its leadership training.

Maersk Line has implemented a learning management system that suggests practical working experience, supported by systematic reflection, to be the most efficient learning method and the most efficient driver of behavioral change.

According to this principle, approximately 70 percent of an employee’s development must come from on-the-job experiences, 20 percent from interaction, coaching and sparring with others, and 10 percent from courses and training programs.

All leaders within Maersk Line are given the opportunity to further develop their leadership capabilities through specific, instructor-led courses such as, “Leading Others” and “Leading Leaders,” as well as day-to-day support by a strong coaching environment.

In both global and local aspects, Maersk Line strives to be recognized as an undisputed leader in liner shipping. According to Group CEO, Nils S. Andersen, Maersk Line will, “Continue to improve efficiency and strive to be the first choice of our customers.”